Domestic ferrous scrap prices declined in Mumbai amid low finished steel sales. Mills are cautious about booking scrap given the low demand from consuming sectors.
The daily Davis Index for HMS 1&2 (80:20) declined by Rs200/mt ($2.69/mt) to Rs33,800/mt del Mumbai mills and the index for sponge iron declined by Rs300/mt to Rs30,800/mt del mills.
Monsoon has halted construction activities in Mumbai, which has pressured TMT prices.
Mills in the North bought limited scrap amid no pick-up in sales from end-users. Local scrap availability was low, which kept the ferrous scrap prices flat. The daily Davis Index for HMS 1&2 (80:20) settled unchanged at Rs35,800/mt del Mandi Gobindgarh and the index for sponge iron settled flat at Rs34,000/mt del mills.
Mills in Maharashtra bagged export orders for billets, a recent booking was confirmed from a steelmaker in Jalna for 15,000mt billet to Abu Dhabi at $603/mt fob.
Market participants are hopeful that ferrous scrap prices will remain firm in the near term as supply is tight and the price gap between imported and local scrap has widened.